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Case Code: MKTG415
Case Length: 16 Pages
Period: 2001-2019
Pub Date: 2020
Teaching Note:Available
Organization : Canada Goose Holdings Inc
Industry :Textiles & Apparel
Countries : Canada
Themes: Brand Strategy/Globalisation/Outsourcing
Case Studies  
Business Strategy
Human Resource Management
Leadership & Entrepreneurship

Canada Goose-Building a Global Luxury Apparel Brand

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The Canada Goose parka usually came in blue and black, with an arm badge in red, white and blue. The jackets, which came with a lifetime warranty, were high on functionality and authenticity. Initially, many users said that the coat was bulky and shapeless. Reiss said, “We are a function-first brand, not a fashion brand. We are built on function – of course we want people to look good in our products ... but that’s not the first consideration.” The jacket was made on a five warmth scale, with five meant for those traveling to the summit of Mount Everest or to the Arctic...

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The company followed the ‘Made in Canada’ doctrine closely. When Canada Goose was expanding, many apparel manufacturers from Canada like Roots and Arc’teryx moved their manufacturing facilities to countries in Asia, where the production costs were low. These manufacturers believed that consumers were not really bothered about where the product was made; they were more concerned about the cost. They believed that low cost would mean more sales and higher profits. According to Reiss, what these manufacturers failed to see was that quality was getting compromised...



For several years, Canada Goose sold its products through a wholesale model through distributors. In 2015, the wholesale segment accounted for 96.3% of the company’s total revenue. It went to the DTC segment after opening an e-commerce site in Canada in 2015. In 2016, the company announced that in the previous five years its revenues had grown by 450% and it was looking at opening its own retail stores. The first outlet was opened in Toronto’s Yorkdale Shopping Centre in October 2016. ..



In the midst of growth, the company became a subject of controversy for the way it was treating coyotes, whose fur was used in the trimming of some of its parkas, and the way geese whose down was used in the coats were suffocated. PETA launched a campaign against the company – ‘Ditch Fur and Down’ against Canada Goose. This made several consumers look for cruelty-free alternatives like local brands Rudsak and Mackage. The consumers also opted for pricier brands like Moncler which were considered cruelty-free. Europe-based Moncler had wider operations and was hugely popular, with more than 200 stores across the world. ..



Bringing more production inhouse meant higher capital expenditure and overheads. If the company had not gauged the demand properly, and if there were weather fluctuations leading to warmer winters, the margins could be lower, cautioned observers about the company’s plans to move more manufacturing internally. At the same time, with the increase in the number of physical stores, any reduction in demand could result in lower revenue, while the fixed costs would remain the same...



Exhibit I (A): Consolidated Statements of Income
Exhibit I (B): Consolidated Statements of Financial Position
Exhibit II:Manufacturing in Canada
Exhibit III: Luxury Outwear Market
Exhibit IV: Canada Goose – Competitors
Exhibit V: Canada Goose – Key Growth Drivers
Exhibit VI: Outerwear Market in China